Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

Came across this with the Greenspan mention which seemed timely for an earlier discussion.
http://www.zealllc.com/2002/spcrash.htm
Excerpt:
>>>Remember Alan Greenspan’s now notorious “irrational exuberance” speech in Washington, DC in December 1996?

It will astound future historians to no end that Greenspan, a famous and brilliant student of economic history, told the world that the markets were dangerously overvalued in 1996, and then proceeded to not only do nothing about it, but throw the credit taps wide open in response to various global “crises” and in effect create what was probably one of the greatest and most destructive equity bubbles in history!

Almost three centuries earlier, John Law’s hideous inflationary experiment of unbridled monetary growth led to the terribly destructive French equity bubble in the 1720s (aka Mississippi Scheme), from which France never really fully recovered. The creation of the unconstitutional private Federal Reserve by stealth and subterfuge in 1913 led to the obnoxious monetary growth in the 1920s that ultimately led to the legendary 1929 Crash in the States. Almost without fail, every destructive bubble in history is created by excessive money and credit growth perpetrated by unelected and unaccountable bankers and bureaucrats.

The Fed’s almost unprecedented monetary excesses of the 1990s were almost certainly one of the primary causes of our current brutal bear market bust. Like most poor decisions in life, fiat monetary inflation has inescapable consequences that are exceedingly unpleasant. We have only witnessed a fraction of this bitter fruit so far, when the markets begin to slide. The bear market in equities has a long way yet to run. Eventually a portion of that mass exodus of money fleeing the equity bear market will probably migrate towards consumer goods, causing inflation that is impossible for the government statisticians to hide, and into commodities, sparking a legendary commodities rally in the coming decade.

The S&P 500’s current excruciating slow-motion crash, marked by the second white arrow above, is occurring because a supercycle bubble in equities was allowed to grow and fester by unaccountable bureaucrats who control the supply of US dollars. I sure hope history remembers these central-banking hooligans who wrought all this widespread devastation in a very harsh light. In future textbooks, next to the chapter on the 18th century’s notorious mega-inflationist John Law, there will be a chapter on today’s notorious mega-inflationist Alan Greenspan.<<<